company background image
WAT

WatercoASX:WAT Stock Report

Market Cap

AU$116.7m

7D

0.3%

1Y

13.1%

Updated

16 Oct, 2021

Data

Company Financials
WAT fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends2/6

WAT Overview

Waterco Limited engages in the manufacture, wholesale, and export of equipment and accessories in the swimming pool, spa pool, spa bath, rural pump, and water treatment industries in Australia, New Zealand, Asia, North America, and Europe.

Price History & Performance

Summary of all time highs, changes and price drops for Waterco
Historical stock prices
Current Share PriceAU$3.27
52 Week HighAU$2.80
52 Week LowAU$3.35
Beta0.064
1 Month Change0.31%
3 Month Change12.76%
1 Year Change13.15%
3 Year Change54.25%
5 Year Change123.97%
Change since IPO717.50%

Recent News & Updates

Oct 02
Waterco (ASX:WAT) Is Paying Out A Larger Dividend Than Last Year

Waterco (ASX:WAT) Is Paying Out A Larger Dividend Than Last Year

The board of Waterco Limited ( ASX:WAT ) has announced that it will be increasing its dividend on the 15th of December...

Sep 15
Waterco (ASX:WAT) Has Announced That It Will Be Increasing Its Dividend To AU$0.04

Waterco (ASX:WAT) Has Announced That It Will Be Increasing Its Dividend To AU$0.04

Waterco Limited ( ASX:WAT ) has announced that it will be increasing its dividend on the 15th of December to AU$0.04...

Sep 02
Robust Earnings May Not Tell The Whole Story For Waterco (ASX:WAT)

Robust Earnings May Not Tell The Whole Story For Waterco (ASX:WAT)

Despite posting some strong earnings, the market for Waterco Limited's ( ASX:WAT ) stock hasn't moved much. Our...

Aug 29
Waterco (ASX:WAT) Is Increasing Its Dividend To AU$0.04

Waterco (ASX:WAT) Is Increasing Its Dividend To AU$0.04

Waterco Limited's ( ASX:WAT ) dividend will be increasing to AU$0.04 on 15th of December. This makes the dividend yield...

Shareholder Returns

WATAU LeisureAU Market
7D0.3%2.1%0.9%
1Y13.1%15.1%20.2%

Return vs Industry: WAT underperformed the Australian Leisure industry which returned 15.1% over the past year.

Return vs Market: WAT underperformed the Australian Market which returned 20.2% over the past year.

Price Volatility

Is WAT's price volatile compared to industry and market?
WAT volatility
WAT Beta0.064
Industry Beta0.99
Market Beta1

Stable Share Price: Insufficient data to determine WAT's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine WAT's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
1981723Soon Gohhttps://www.waterco.com.au

Waterco Limited engages in the manufacture, wholesale, and export of equipment and accessories in the swimming pool, spa pool, spa bath, rural pump, and water treatment industries in Australia, New Zealand, Asia, North America, and Europe. It also manufactures and sells solar heating systems for swimming pools and pre-heat industrial solar systems. The company’s pool and spa products, comprises of mineral ozone, hydroxypure, chlorine free spa, infloor pool cleaning, minerals, commercial chemical dosers, pumps, filters, filter media, electric spa heating, electroheat heat pumps, gas and solar pool heating equipment, chemical dosing systems, salt water chlorinators, ozone, controllers and automation, pool lighting, suction and robotic cleaners, recirculation accessories, blowers, valves, spa equipment, chemicals, and maintenance accessories.

Waterco Fundamentals Summary

How do Waterco's earnings and revenue compare to its market cap?
WAT fundamental statistics
Market CapAU$116.67m
Earnings (TTM)AU$12.76m
Revenue (TTM)AU$118.38m

9.1x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
WAT income statement (TTM)
RevenueAU$118.38m
Cost of RevenueAU$57.72m
Gross ProfitAU$60.66m
ExpensesAU$47.91m
EarningsAU$12.76m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.36
Gross Margin51.24%
Net Profit Margin10.77%
Debt/Equity Ratio0.9%

How did WAT perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

20%

Payout Ratio

Does WAT pay a reliable dividends?

See WAT dividend history and benchmarks
When do you need to buy WAT by to receive an upcoming dividend?
Waterco dividend dates
Ex Dividend DateNov 09 2021
Dividend Pay DateDec 15 2021
Days until Ex dividend23 days
Days until Dividend pay date59 days

Does WAT pay a reliable dividends?

See WAT dividend history and benchmarks

Valuation

Is Waterco undervalued compared to its fair value and its price relative to the market?

9.15x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WAT (A$3.27) is trading above our estimate of fair value (A$1.33)

Significantly Below Fair Value: WAT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WAT is good value based on its PE Ratio (9.1x) compared to the Global Leisure industry average (16.4x).

PE vs Market: WAT is good value based on its PE Ratio (9.1x) compared to the Australian market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WAT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WAT is good value based on its PB Ratio (1.2x) compared to the XX Leisure industry average (2.2x).


Future Growth

How is Waterco forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.2%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Waterco has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Waterco performed over the past 5 years?

28.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WAT has high quality earnings.

Growing Profit Margin: WAT's current net profit margins (10.8%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: WAT's earnings have grown significantly by 28.4% per year over the past 5 years.

Accelerating Growth: WAT's earnings growth over the past year (308.8%) exceeds its 5-year average (28.4% per year).

Earnings vs Industry: WAT earnings growth over the past year (308.8%) exceeded the Leisure industry 61.1%.


Return on Equity

High ROE: WAT's Return on Equity (12.6%) is considered low.


Financial Health

How is Waterco's financial position?


Financial Position Analysis

Short Term Liabilities: WAT's short term assets (A$61.2M) exceed its short term liabilities (A$21.4M).

Long Term Liabilities: WAT's short term assets (A$61.2M) exceed its long term liabilities (A$13.6M).


Debt to Equity History and Analysis

Debt Level: WAT's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: WAT's debt to equity ratio has reduced from 34.2% to 0.9% over the past 5 years.

Debt Coverage: WAT's debt is well covered by operating cash flow (590.6%).

Interest Coverage: WAT's interest payments on its debt are well covered by EBIT (25.9x coverage).


Balance Sheet


Dividend

What is Waterco current dividend yield, its reliability and sustainability?

2.45%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 16 2021Ex Dividend DateNov 09 2021Dividend Pay DateDec 15 202136 days from Ex DividendBuy in the next 23 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: WAT's dividend (2.45%) is higher than the bottom 25% of dividend payers in the Australian market (2.27%).

High Dividend: WAT's dividend (2.45%) is low compared to the top 25% of dividend payers in the Australian market (5.32%).


Stability and Growth of Payments

Stable Dividend: WAT's dividend payments have been volatile in the past 10 years.

Growing Dividend: WAT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.7%), WAT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.9yrs

Average board tenure


CEO

Soon Goh

no data

Tenure

AU$453,798

Compensation

Mr. Soon Sinn Goh, B COM, FCPA, is the Founder of Waterco Limited and serves as its Chairman and Chief Executive Officer and also has been its Member of the Board since its inception in February 1981. In 1...


CEO Compensation Analysis

Compensation vs Market: Soon's total compensation ($USD336.82K) is about average for companies of similar size in the Australian market ($USD302.45K).

Compensation vs Earnings: Soon's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: WAT's board of directors are seasoned and experienced ( 11.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Waterco Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Waterco Limited
  • Ticker: WAT
  • Exchange: ASX
  • Founded: 1981
  • Industry: Leisure Products
  • Sector: Consumer Durables
  • Market Cap: AU$116.670m
  • Shares outstanding: 35.68m
  • Website: https://www.waterco.com.au

Number of Employees


Location

  • Waterco Limited
  • 36 South Street
  • Rydalmere
  • New South Wales
  • 2116
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 07:04
End of Day Share Price2021/10/14 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.